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That...couldn't be more wrong. Back in 2012 it was determined that Greek debt was unsustainable, and a large haircut was needed. But because the EU government
by Lazare 11y ago
That...couldn't be more wrong.
Back in 2012 it was determined that Greek debt was unsustainable, and a large haircut was needed. But because the EU governments were unable/unwilling to accept any haircut on their holdings of Greek debt, that write down was borne entirely by private sector lenders.
> Instead, the governments cared only for the banks.
The banks lost 75%+ of their loans. The governments lost 0%. There's no way you can realistically spin that as a bail out of the banks.
- PythonicAlpha 11y agoThe question is, when the banks "lost 75% of their loans". To my knowledge, this happened much later, when the banks that initially where in danger already got rid of the most toxic loans. Those loans either went to the EU "Rescue Umbrella" or where sold (with discounts). When those sold loans later where haircut, than the lost value of 75% was on papers, but the value that those holders really lost very likely much smaller (if any), because they bought the loans with huge discounts.